CHOPPIES ENTERPRISES LIMITED - Trading statement

Trading statement

CHOPPIES ENTERPRISES LIMITED

(Incorporated in the Republic of Botswana)
Registration number: BW00001142508
BSE SHARE CODE: CHOP-EQO
JSE SHARE CODE: CHP
ISIN: BW0000001072
("Choppies") or (the "Group") or ("Company")


TRADING STATEMENT

In terms of the Listings Requirements of the Botswana Stock Exchange ("BSE") and the JSE Limited ("JSE"), companies
are required to publish a trading statement as soon as they become reasonably certain that the financial results for
the period to be reported on next will differ by more than 10% (in the case of the BSE) or more than 20% (in the case
of the JSE) from the financial results reported for the previous corresponding period.
Choppies is currently finalising its financial results for the 12 months ended 30 June 2025 ("FY2025"). Profit after tax
from total operations is expected to be in the range between negative 35% to negative 25%. Profit after tax from
continuing operations is expected to in the range between negative 28% to 18%.

The current year profit after tax for both total operations and continuing operations were impacted by the loss on
sale of the Zimbabwean business, foreign exchange rate differences on IFRS 16 lease liabilities, cost of diesel to
mitigate load-shedding, profit or loss on sale of assets and profit on sale of Mediland last year.

As a result of the sale of the Zimbabwe segment, profit after tax for total and discontinued operations were
impacted by the reclassification of foreign currency translation reserves and the reclassification of the hyper
inflationary reserves through profit or loss.

Profit after tax was also impacted by the effective tax rate of 31% (FY2024: 15%) which is higher than the standard
rate primarily due to losses in Namibia for which we have not yet raised any deferred tax, and non-deductible loss on
the sale of Zimbabwe. Last year's rate was lower than the standard rate due to deferred tax raised on carried
forward tax losses in the Zambia segment.

The Group expects continued resilience in core markets despite external challenges, including regional currency
volatility, inflationary pressures, and global uncertainty. Strategic priorities remain:

    -   Consolidating profitability in Botswana, Namibia, and Zambia.
    -   Completing the turnaround of hardware and Liquorama.
    -   Maintaining financial discipline and covenant headroom; and
    -   Advancing ESG initiatives.

The Board remains confident that Choppies is positioned for sustainable growth and improved shareholder returns.
Choppies expects the FY2025 financial results to be within the following ranges: -

                                                              FY2025                  FY2025          FY2024
                                                         Expected range (%)        Expected range   *Represented
 Profit after tax - BWP Millions
   Total operations including continuing operations         (35%) - (25%)               88 - 102       136
   Continuing operations                                    (28%) - (18%)              141 - 161       196
 Adjusted EBIT - BWP Millions
   Total operations including continuing operations           18% - 28%                334 - 362       283
   Continuing operations                                      7% - 17%                 368 - 402       344
 Adjusted EBITDA - BWP Millions
   Total operations including continuing operations           6% - 16%                 608 - 666       574
   Continuing operations                                      5% - 15%                 637 - 698       607
 Earnings per share - thebe
   Total operations including continuing operations         (35%) - (25%)              4.9 - 5.7        7.6
   Continuing operations                                    (25%) - (15%)              7.9 - 8.9       10.5
 Headlines earnings per share - thebe
   Total operations including continuing operations           15% - 24%                7.8 - 8.4       6.8
   Continuing operations                                      (7%) - 3%                8.9 - 9.9       9.6

*Comparative numbers have been represented in accordance with the application of IFRS 5: Non-current Assets Held
for Sale and Discontinued Operations. The Group sold the assets of the Zimbabwean segment in December 2024.
The general merchandise business, the South African liquor business and the Mediland business were discontinued
during the June 2024 financial year.

The estimated financial information on which this trading statement is based has not been reviewed nor reported on
by the Company's external auditors. Accordingly, shareholders are advised to exercise caution when trading in the
Company's securities until such time as the actual results are released. The Company expects to release its FY2025
financial results on or about 22 September 2025.
The Company's primary listing is on the BSE and its secondary listing is on the JSE.

17 September 2025

BSE Sponsoring Broker                                                       JSE Sponsor
Motswedi Securities (Pty) Ltd                                               PSG Capital

Date: 17-09-2025 09:30:00
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